FDI Records a Modest Growth in Jul-Nov 2021

The foreign direct investment recorded a modest growth of 12 percent from July to November 2021 compared to the corresponding period of the last year. According to the State Bank of Pakistan, the inflow on account of foreign direct investment stood at $797 million in the five months of the current financial year compared to the $710 million investment recorded in the real sector during the same period. Investment inflows from the Netherlands stood at $150 million, the highest during the period. It is followed by China, with an investment of $144 million, and UAE, with an investment of $65 million. The oil and gas exploration and production sector received the highest investment of $229 million. It is followed by the power sector, with an investment of $110 million, and communications, with an investment of $100 million during the period of July to November 2021. The foreign portfolio investment continued to show a discouraging trend during the period under review. The foreign portfolio investment showed an outflow of $79 million on account of debt securities or repayment of dividends to investors of Pakistan’s issued bonds in the global market. Last year, the portfolio investment witnessed an outflow of $261 million during the same period. Overall, the net foreign investment of the country, including the inflows of investment in the real sector and outflow of foreign portfolio investment, stood at $718 million from July to November, which stands 69 percent higher from the similar period of last financial year. The foreign direct investment and foreign portfolio investment are likely to show a modest surge in the coming months with the improvement in global and local business scenarios.